USDCAD Approaching Fair Market Value

The USDCAD resumed its descent on Monday, as support for the US dollar waned ahead of key jobs data later in the week.

The USDCAD tumbled 0.6 percent to 1.2108, rebounding from a session low of 1.2090. The USDCAD mounted a comeback on Friday, but was sent back around the 1.22 threshold. Initial support is located at 1.2075. On the upside, initial resistance is likely found at 1.2187, Friday’s high.

Price action suggests the pair may enter a new low in the near-term before the bulls resume control of the market in the future. Long-term bullish bias for the USDCAD is intact, but a broad-based US dollar pullback appears likely over the short-run. The extent of the USD pullback could depend on Friday’s April nonfarm payrolls report.

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